Posts Tagged ‘homeowner advice’

Location, Location, Location!

There are many things that should be considered when buying a home. Since most home buyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain.

“Location, location, location,” is a common and almost overused phrase in real estate and has been in use at least since 1926, according to the New York Times. It is just as relevant now as it was then.

The idea is to buy a house that will appeal to the largest number of potential future home buyers. A careful choice of location can minimize potential negative influences on future resale value, and maximize positive influences.

So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home will be a good investment.

Some “good” and “bad” qualities simply vary by community. If you know your local community, you know which parts of town are less or more desirable.

Safety:

People want to live where there’s little or no crime. Naturally, they want to feel safe in their homes and will pay extra for it. A safe neighborhood means people will feel free to walk around, be outdoors and interact with their neighbors.

Good Schools:

Whether you have children, plan on having them, never want children, or they are out of the house; the better the school district, the higher the values of the surrounding homes can be. . The reputation, the quality and the district are additional factors in finding a good school. Homes surrounding good schools are in high demand. Found a home you love but the school district is subpar? Be aware of that issue for resale down the road.

Convenient access to work, popular places, shops and restaurants

Everyone wants to be near the best commercial districts. The closer to the hubbub of a particular town or the best parts of a city, the better the location – and the more someone is willing to pay for a home. The distance from point A to point B is so important. A long commute burns more gas and wastes more time than necessary. Therefore, evaluate the time it takes to travel from the home to the following: work, school, store, hospitals and favorite hangouts. Buyers without cars must live in communities with public transportation access. A community containing local amenities close by is valuable to buyers.

View, Views, Views:

No matter which town or city, someone will always pay for a great view or to be on or near the water. An interior location with lack of road noise is also an important consideration. If the community does not offer views, then the backyard area and how it is designed is a consideration.

Access to public transit and/or freeways:

In major cities, the farther you live from the bus, subway or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. Being near a train or bus can get you anywhere in a short amount of time. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location. Adding 20 minutes to a commute just to get to the freeway never helps a location.

It’s almost easier to talk about what constitutes a bad location than to discuss good locations. There are some common characteristics that make a location “bad,” no matter where you are. That is because the qualities that make a good location desirable can vary, depending on whether you’re looking in the city, suburbs, the country or the mountains. Bad locations, by their general nature, are easier to pinpoint. Some examples are:

Commercial/industrial areas:

Unless you live downtown, commercial buildings on your block diminish residential real estate values. Part of the reason is because homeowners cannot control loitering. Homes next to gas stations or shopping centers are undesirable because of the noise factor and compromise safely.

Railroad tracks, freeways or under flight paths:

Some city dwellers have homes close to railroad tracks and endure rumbling and other noise 24-hours a day. If you have a choice to be in a quiet area, free from road noise within the same community, this is the better choice of residence.

Economically depressed areas:

If owners show no pride of ownership in maintaining their homes, evidenced by lack of maintenance, poor landscaping and junk in the yard, you might think twice about moving into such an area.

Close to hazards:

People don’t want to live next door to power plants or substations. Few home buyers want a transformer in their yard, either. Understand the flooding risks and exposure to natural disasters and the preventative measures that have been taken to minimize them.

Other factors that can make for a “bad” location: very close proximity to a fire station (good if your house is on fire, not so good if you’re trying to sleep); a hospital (frequent ambulance sirens); an airport (sounds of jet engines 18 hours per day) or a school (traffic from buses or parents dropping off children or kids yelling and playing).

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, Kim Around the Web, Real Estate, real estate news, Real estate trends, Relocation, South Florida Real Estate, western north carolina real estate by Kim Bregman
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Ensure A Smooth Mortgage Application Process

What to do before closing:

You can still be denied for a mortgage loan, even after you’ve been pre-approved by the lender. The pre-approval is not a commitment or guarantee. You’ve been conditionally qualified for loan. But you need to stay qualified all the way up to the closing. The less your financial situation changes, the better.
If you withdraw or transfer funds for any reason before closing, your lender will probably ask for a written explanation. They will also want to see a record of the transaction, such as your bank statements.
Make sure you have a home owners insurance policy in place. Your lender will require this. They might even require you to pay the first year’s premium in advance, by setting up an escrow account. The lender may contact your insurance agent before closing day, to verify the policy and coverage amount.
If you make any large deposits into your account, tell your lender about it. It will only help your cause, as far as mortgage approval goes. Provide any documents you have relating to the deposit.

What to avoid before closing day:

Don’t spend a lot of money. Implement a self-imposed “spending freeze,” as much as possible. You obviously have to buy groceries, gas for your car, and other necessities. But don’t spend anything beyond that. Keep things as stable as possible until after you close on the home.
It’s best to avoid any major purchases during this period. Your lender might have certain cash-reserve requirements for the loan. So a major reduction in assets could hurt your chances of getting the final approval.
Don’t open any new credit lines, such as credit cards. The same goes for buying a car, applying for a store credit card, etc. These things will change your debt ratio, which could cause problems with your final approval. Mortgage lenders hate surprises.
Don’t switch jobs before closing, unless it’s completely unavoidable. A new job usually brings a change in income, as well. If your income goes down, it will alter your debt-to-income ratio in a bad way. A change in employment will also require a lot of paperwork changes. Some lenders will verify your employment again, just before closing day.

Filed under: Blog, boomerrang homebuyer, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, Real Estate, Real Estate Closings, South Florida Real Estate by Kim Bregman
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How to Assess the Cost of a Real “Fixer-Upper”

When you buy a fixer-upper residence for either personal or investment reasons, you need to have a thorough understanding of all of the potential related additional costs to determine if it is a worthwhile investment.

The following analysis in introspection will assist you in determining much you can afford, how much to offer, and whether a fixer-upper house is right for you.

Decide what you can do or want to do yourself

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult renovation job that you don’t know how to do will take longer than you think and can lead to less-than-professional results.

Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.

Do you really have the time and desire to do it? Can you take time off work to renovate? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

Price the cost of repairs and remodeling before you make an offer

If you are using a professional get several estimates on the work you want done by licensed and insured contractors.

If you’re doing the work yourself, price the supplies.

Either way, tack on 10% to 20% to cover unforeseen problems that WILL arise when you start to open walls, remove windows, install electric and plumbing, etc.

Check permit costs

Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home. Also check to ensure that there was no other non-permitted work done to the home. If you get permits that chance that this work will be found and cited is likely.

Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.

Factor the time,costs, and additional requirements of permits into your plans.

Double check pricing on structural work

If your renovation plans include major structural work, hire a structural engineer to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full scope of the work required.

Get written estimates for repairs before you commit to buying a home with structural issues.

Don’t purchase a home that needs major structural work unless:

You’re getting it at a steep discount

You’re sure you’ve uncovered the extent of the problem

You know the problem can be fixed

Check the cost of financing

Be sure you have enough money for a down payment, closing costs, and repairs without draining your savings.

If you are planning to fund the repairs with a home equity or home improvement loan:

Get yourself pre-approved for both loans before you make an offer.

Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.

Include inspection contingencies in your offer

Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections such as whole home inspection, radon, mold, lead-based paint, chinese drywall, septic, well and pest.

Lastly, don’t pay more than fair-market value

Have your EXCLUSIVE BUYER AGENT develop an comparative market analysis that makes adjustments for all of the issues involving the property, location, condition, time value of money, et. al. A transactional broker or listing agent is interested in selling the property for the highest price and is not working in a buyer’s best interest. Always use an EBA when purchasing real estate.

Filed under: Blog, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Homebuyer Advice, Real Estate, Real Estate Closings, real estate news, western north carolina real estate by Kim Bregman
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2016 Florida Homestead Exemption Reminder

It’s not too early to file for a property tax exemption for next year; filing now
will allow Florida property owners to beat the rush that normally occurs early in the year
as people try to beat the March 1 deadline.

Any Florida property owner with legal title to a home and who uses it as his or
her permanent, primary residence by Jan. 1 is eligible for this exemption. Homeowners
making their first claim at this time should contact their respective county property
appraiser’s office to find out how best to file for the exemption — many offices
offer applications online or will mail applications to residents. Homeowners may
also file for a homestead exemption in person, bringing along the deed to their
property or a property tax bill — something to prove they own the home. Most property
appraisers’ offices will accept applications for homestead exemption until the March
1 deadline. Please call your local county property appraiser’s office to find out
more.Visit the link found on my web site for contact information.

https://www.optimaproperties.com/south-florida-resources

Here are the criteria to see if you qualify and the documentation you will need
to provide along with your application:

$25,000 Homestead Exemption

Every person who has legal or equitable title to real property in the State of Florida
and who resides thereon and in good faith makes it his or her permanent home is
eligible to file for Homestead Exemption. First time applicants are required to
furnish their social security number, and should have available evidence of ownership(
i.e., deed, contract, etc. ) If title is held by the husband alone, a wife may
file for him, with his consent, and vice versa. If filing for the first time, be
prepared to answer these and other questions:

1. In whose name or names was the title to the dwelling recorded as of January 1st?
2. What is the street address of the property?
3. Are you a legal resident of the State of Florida? (A Certificate of Domicile
or Voter’s Registration will be proof if dated prior to January 1st.)
4. Do you have a Florida license plate on your car and a Florida driver’s license?
5. Were you living in the dwelling which is being claimed for homestead exemption
on January 1st?

Additional $25,000 Homestead Exemption for persons 65 and older

Every person who is eligible for the homestead exemption described above is eligible
for an additional homestead exemption up to $25,000 under the following circumstances:
(1) the county or municipality adopts an ordinance that allows the additional homestead
exemption which applies only to the taxes levied by the unit of government granting
the exemption; (2) the taxpayer is 65 years of age or older on January 1 of the
year for which the exemption is claimed; (3) the annual household income of the
taxpayer (defined as the adjusted gross income as defined in s. 62, United States
Internal Revenue Code of all members of a household) for the prior year does not
exceed $20,000 (beginning January 1, 2001, this income threshold is adjusted annually
by the percentage change in the average cost-of-living index); and, (4) the taxpayer
annually submits a sworn statement of household income to the property appraiser
not later than March 1.

$500 Widow’s Exemption

Any widow who is a permanent Florida resident may claim this exemption. If the widow
remarries, she is no longer eligible. If the husband and wife were divorced before
his death, the woman is not considered a widow. You may be asked to produce a death
certificate when filing for the first time.

$500 Widower’s Exemption

Any widower who is a permanent Florida resident may claim this exemption. If the
widower remarries he is no longer eligible. If the husband and wife were divorced
before her death, the man is not considered a widower. You may be asked to produce
a death certificate when filing for the first time.

$500 Disability Exemption

Every Florida resident who is totally and permanently disabled qualifies for this
exemption. If filing for the first time, please present at least one of the following
as proof of your disability: A certificate from a licensed Florida physician or
a certificate from the United States Department of Veterans Affairs.

$5000 Disability Veteran

Any ex-service member disabled at least 10% in war or by service-connected misfortune
is entitled to a $5000 exemption. If filing for the first time, please present a
certificate from the United States Government.

$500 Exemption for blind persons

Every Florida resident who is blind qualifies for this exemption. If claiming exemption
based on blindness, a certificate from the Division of Blind Services of the Department
of Education or the United States Department of Veterans Affairs or the Federal
Social Security Administration certifying the applicant to be blind is required.
“Blind person” is defined as an individual having central vision acuity 20/200
or less in the better eye with correcting glasses, or a disqualifying field defect
in which the peripheral field has contracted to such an extent that the widest diameter
or visual field subtends an angular distance no greater than twenty degrees.

Service-connected total and permanent disability exemption

Any honorably discharged veteran with a service-connected total and permanent disability,
surviving spouses of qualifying veterans and spouses of Florida resident veterans
who died from service-connected causes while on active duty as a member of the United
States Armed forces are entitled to an exemption on real estate used and owned as
a homestead less any portion thereof used for commercial purposes.

Persons entitled to this exemption must have been a permanent resident of this state
as of January 1st of the year of assessment.

Under certain circumstances the benefit of this exemption can carry over to the
veteran’s spouse in the event of the veteran’s death. Consult your appraiser for
details.

If filing for the first time, please bring a certificate from the United States
Government or United States Department of Veterans Affairs as your proof of a service-connected
disability or death of your spouse while on active duty.

Exemption for totally and permanently disabled persons

1. Any real estate used and owned as a homestead, less any portion thereof used
for commercial purposes by any quadriplegic shall be exempt from taxation.
2. Any real estate used and owned as a homestead, less any portion thereof used
for commercial purposes, by a paraplegic, hemiplegic or other totally and permanently
disabled person, as defined in Section 196.012(10), F.S., who must use a wheelchair
for mobility or who is legally blind, shall be exempt from taxation.

Persons entitled to the exemption under number two (2) above, must be a permanent
resident of the State of Florida as of January 1st of the year of assessment. Also,
the prior year gross income of all persons residing in or upon the homestead shall
not exceed the amount of income, set forth in section 196.101(4), F.S., adjusted
annually by the percentage change of the average cost of living index issued by
the United States Department of Labor. Gross income shall include United States
Department of Veterans Affairs benefits and any social security benefits paid to
the person. A statement of gross income must accompany the application.

If filing for the first time, please bring a certificate from two (2) licensed doctors
of this state or a certificate (per s. 196.091, F.S.) from the United States Department
of Veterans Affairs.

_____________________________

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, Kim Around the Web, Real Estate, Real Estate Closings, real estate news, Real estate trends by Kim Bregman
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2016 Real Estate Forecast

Forecasts for the 2016 housing market are starting to trickle in; analysts are predicting that next year’s market will be a picture of “moderate, but solid growth.”

Several real estate pundits are predicting about a 3% year over year growth in housing prices with price increases being dampened by predictions of mortgage rates increasing to 4.65% for a 30-year fixed by the end of 2016.

Total sales of existing and new homes will reach 6 million for the first time since 2006; new home starts will increase 12 percent and new home sales will grow 16 percent, but it will take continued growth in both the gross domestic product and the job market to get there.

The U.S. economy in 2016 is expected to power forward at a steady, reasonable pace. Surveys of lenders continue to show that credit is becoming more available for homeowners, aided by new jobs for millions more people now working.

Lawrence Yun, chief economist for the National Association of REALTORS® expects a moderate annual increase in sales of existing homes of around 7.3 percent in 2015, rising 2.9 percent in 2016. Even brighter is the outlook for new-homes sales, projected in 2015 to grow at 14.9 percent over 2014 levels, and 16.7 percent in 2016.

2015 may have marked the best year for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by Realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one.

Realtor.com® highlights the following housing predictions for 2016:

1. ‘Normal’ is coming.

Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem-it’s just a return to normalcy,” writes Jonathan Smoke,Realtor.com’s® chief economist. New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

2. Generational buying trends shape up.

Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home-buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year.

But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, Realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

3. New-home construction focuses more on affordability.

Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers.

4. Higher mortgage rates.

Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the New Year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.

5. Rents to go up even higher.

Rental costs are skyrocketing, and the costs are likely to only go up in the New Year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of stable income of the kind necessary to qualify for a mortgage today.”

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Kim Around the Web, Mortgage Information, Real Estate, Real Estate Closings, real estate news, Real estate trends by Kim Bregman
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Florida Home Buyers Don’t Know What They Don’t Know…

And the Florida real estate industry likes it that way.

When the disclosure laws, implemented in 2003, changed in 2008 to do away with the “transaction broker” disclosure, the real estate industry must have been celebrating. It was hard for real estate licensees to tell buyers and sellers that they weren’t being represented. After July 1, 2008 they didn’t have to anymore.

The presumption in Florida, after July 1, 2003, is that all real estate licensees are “transaction brokers”. A transaction broker “facilitates” a transaction but doesn’t represent either the buyer or the seller as an agent. The real estate licensee is a salesperson working with a buyer or seller customer. In order for a buyer or seller to actually be represented they must enter into a written “single agent” disclosure agreement whereby the real estate licensee agrees to take on the full legal fiduciary duties of an agent and a buyer or seller agrees to have them as their agent. Then the real estate licensee is an agent and the buyer or seller is a client.

And that is the issue. Through the presumption of transaction broker, a buyer or seller has no way of knowing what it is or what they might be giving up. The real estate industry decided to keep buyers and sellers in the dark and “not knowing what they don’t know”. If there is no written disclosure alerting the buyer or seller to what transaction brokerage really is and that there is a better option, single agency, how are they supposed to know any better.

At least prior to July 1, 2008, a home buyer got a disclosure that told them, ““….parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties”.

But not after July 1, 2008. The requirement that a buyer or seller be given the transaction disclosure was dropped from the law. So from that time forward buyers and sellers in Florida have no idea that they aren’t being represented unless somehow they had read something about the disclosure going away in an article somewhere back in or around 2008 or a real estate licensee (and the company they are with) actually believes in providing full legal fiduciary duties to a buyer or a seller and presents them with the option of single agency and explaining it’s worth to the buyer or seller.

Fast forward to 2015 and soon to be 2016. Many of the buyers today weren’t buyers in 2008. They have no idea that the real estate licensee they are working with isn’t representing them. They just assume that they are their agent because most real estate licensees continue to act like and talk like an agent and in many cases actually perform duties and services that only an agent can legally provide. So of course a buyer is going to think that they are working with an agent.

Many other states have a “summary-like” agency disclosure which is handed to a buyer or seller before any personal information is gathered or questions asked alerting the buyer or seller of their options. The Florida Legislature in 1997 came up with one titled, “Brokerage Relationship Disclosure Act”. It provided for a Notice of Nonrepresentation disclosure. This disclosure had to be given “at first contact.”

[Florida Stat., sect. 475.276 (1)] According to the statute, the disclosure is to be given then, “. . . except in situations where a licensee knows that the potential seller or buyer is represented by a single agent or a transaction broker. If first contact between a licensee and a customer occurs during the course of a telephone conversation or any other communication in which the licensee is unable to provide the required notice of nonrepresentation, the licensee shall provide an oral notice and thereafter provide the required notice of nonrepresentation at the time of the first face-to-face contact, execution of a brokerage relationship agreement, or execution of a contractual agreement for purchase and sale, whichever occurs first.” [Florida Stat., sect. 475.276 (2)]

The effect of this disclosure was to let consumers know just where they stood with regard to the licensee they were dealing with. Also it was designed to minimize the occasions when an unintended, unauthorized, and undisclosed dual agency arose because of the behavior of the parties. Here is a copy of what that disclosure looked like back in 1997.

NOTICE OF NONREPRESENTATION

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS NOTICE AT FIRST CONTACT TO ALL POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.

You are hereby notified that . . . . . . . . . . . . . . . . . (insert name of brokerage firm) and I do not represent you in any capacity. You should not assume that any real estate broker or salesperson represents you unless you agree to engage a real estate licensee in an authorized brokerage relationship, either as a single agent or as a transaction broker. You are advised not to disclose any information you want to be held in confidence until you make a decision on representation. (Emphasis is mine) Your signature below acknowledges receipt of this form and does not establish a brokerage relationship.

After a consumer received the notice of non-representation, several choices were presented. If it was mutually agreeable, the licensee and the consumer would enter into a written authorized brokerage relationship of transaction broker or single agent, similar to what we have today. However, the difference was that the buyer or seller were put on notice not to say or disclose any information that they wanted kept in confidence until they had a chance to explore and accept a more formal relationship.

I suspect that the real estate industry took exception to providing true fiduciary duties that single agency required along with the legal liability that being an actual agent entails. A local real estate attorney writes in his blog, “Given all the bad acts that have happened in the Florida real estate market in recent years, having an agent with the legal duty to act as a fiduciary can make all the difference in whether or not someone who has been wronged gets compensated for their damage. It is a huge limitation on the liability of a real estate agent and their broker to be able to act as a transaction broker instead of an agent – fiduciary. How important that fiduciary duty may be to you will not become clear unless and until you are harmed. Many buyers and sellers won’t understand the possibility of having a real estate professional act as a fiduciary on their behalf until a catastrophe happens and they are meeting with a Florida real estate lawyer to try and find justice.”

Nearly all real estate companies in Florida operate as transaction brokers now and not as single agents. Single agency is rare and mostly available only through exclusive buyer agencies in Florida. Exclusive buyer agencies represent buyers only and never take listings or represent sellers. They don’t have the conflict of trying to represent buyers and sellers for the in-house transaction. Buyers Only Florida Realty is an exclusive buyer agency and we only represent buyers and never sellers. We take on the full legal liability of being an agent as noted above in the attorney’s blog.

The real estate industry really wanted a way to not be an agent at all and thus lobbied for changes passed by the Florida Legislature that took affect July 1, 2003 that brought about the “presumption of transaction brokerage” which we have today. As noted above, the “transaction brokerage” disclosure continued until July 1, 2008 when it went away. So here we are in 2015 and soon to be 2016 with buyers and sellers deliberately kept in the dark and misled by the real estate industry. It would be nice if such a true disclosure were brought back in Florida to be given to both buyers and sellers at first contact, as back in 1997, warning them not to disclosure anything that they feel is confidential and giving them a summary of their options and the consequences of each. I doubt we will ever see that again. The real estate industry seems very content with the way things are.

Filed under: Uncategorized by Kim Bregman
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You Are Under Contract…What’s Next?

You searched for homes over the course of months or even years. You endured a series of offers and counter offers, property disclosures, inspections and reports. Finally, after so much excitement, stress and anxiety, the house hunt has come to an end.

But the story isn’t over yet. Here are some next steps to consider before you actually move in.

Plan any work well in advance:
Rarely does a buyer get a place that is truly in “move-in” condition. By the time you’ve signed a contract, you have lots of ideas about how you’ll live in this home, how you’ll customize it to suit you and your family, and what work needs to be done.

If the place needs work, don’t wait until you’ve closed to engage a painter, a floor re-finisher, or a general contractor. Either at your final walk-through or during a private appointment after you’ve removed your contingencies get the proper contractors in the house. Start getting bids for necessary work. If possible, have floor sanding, painting, demolition, or small fix-it work done before you move in. Real estate agents work with all kinds of tradespeople, so they’re often a great resource recommendations.

Set up the utilities:

Some people assume the utilities will work once they walk in on day one. While many utility companies have grace periods (the days between when the seller cancels service and the new owner calls), you can’t always assume this will be the case. If you have an out-of-town seller, they may have cancelled services the day they knew all contingencies were removed. In this instance, the grace period likely lapsed, and you may be stuck dealing with the electric company, waiting for an appointment or just being without power when you really want to start painting, fixing or cleaning.

The best plan is to call the utility companies and get service set up well before closing. If they haven’t received cancellation notice from the seller, let the seller know to take care of that.

Got the keys? Great, now change the locks:

Assume that every one and his brother has a set of keys to your new home. The seller’s real estate agent likely gave copies to his or her assistant, a painter, stager or even another agent at some point during the marketing period. That’s why the first person you should call after getting the keys is a locksmith.Spend the money to get all the locks changed right away. You’ll sleep better at night.

Hire a cleaning crew:

The Seller has an obligation to leave the property “broom clean”, but this in no way assures that the carpets have been cleaned, the floors mopped and the insides of the cabinets and drawers have been wiped down/ There’s nothing worse than showing up with the movers, dozens of boxes and your personal belongings only to discover the seller hadn’t had the place cleaned thoroughly.

Assume the worst and get a professional cleaning crew in there the minute after the closing. Even if the seller did clean, they may have done a poor job. You want to start life in your new home with a clean slate. The movers might make a mess while moving in. But the bones of the place will be sparkling clean and you won’t be scrambling to get cleaners in while the home is in a state of disarray as you unpack.

Have a handyman, small contractor or designer on call:

Moving in can take days, if not weeks, and is made up of the kind of stuff you wouldn’t wish on your worst enemy. Things like aligning your framed artwork, centering the couch in the living room or getting the large rug set up in the master bedroom can drive you crazy. Nailed multiple holes in the wall in an attempt to get your family photos lined up on the staircase? Not all of us are cut out to do this kind of stuff.

While it may seem like a luxury, investing a few hundred dollars in hiring someone to take orders, help with setting up and take over some of these mindless tasks will save time and potentially relieve you of a giant headache.

Thinking ahead is the way to go:

The journey to home buying could have been anything from fun to stressful and emotional. When the closing date draws near, you’re probably exhausted. But taking a little extra time to plan ahead will save you time, money and a lot of hassle. And it will make the move into your new home so much more satisfying.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Maintenance, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings, real estate news, Relocation, western north carolina real estate by Kim Bregman
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2015 – The Year of the Boomerang Buyer

This year is already shaping up to be the year of the boomerang buyer, or the repeat homebuyer. As it is now seven years since the housing crash, there are many buyers who experienced a financial hardship in the recent past who are getting back into the market to purchase a home again in 2015.

There were several changes recently to the waiting periods when a buyer or homeowner can obtain a new mortgage and repurchase a home again after a foreclosure, short sale or bankruptcy. Borrowers today essentially have three options when it comes to obtaining financing to purchase a home. In fact, more than 9 out of 10 mortgages are either funded by Fannie Mae/Freddie Mac, the FHA or VA. So, if you are looking to purchase and need financing, it is more than likely you will be using one of these three financing options and it is important to know the current waiting periods when you can repurchase after a hardship.

After Foreclosure:

Conventional: Seven years. If you included the foreclosure in a bankruptcy, you can qualify after four years instead of seven years.
FHA: Three years. FHA buyers can qualify again after just one year if they experienced an economic event.
VA: Two years.

After Short Sale:

Conventional: Four years.
FHA: Three years. If the FHA buyer did not have any late payments before their short sale, they are allowed to automatically qualify again for FHA financing. There’s also a fantastic FHA program called the FHA Back to Work Program. If a buyer experienced an “economic event” whereby their household income fell by 20 percent or more for a period of at least six to 12 months, the agency has now reduced the waiting period to only one year.
VA: Two years.

After Bankruptcy:

Conventional: Chapter 7, four years; Chapter 13, two years.
FHA: Chapter 7, one year; Chapter 13, one year.
VA: Chapter 7, two years; Chapter 13, one year.

What if you don’t fit into these rules?

There are new mortgage options available for borrowers who do not fit these more traditional mortgage options above. Portfolio lenders are stepping in to provide mortgage options for buyers who cannot qualify for conventional, FHA and VA financing, and with terms much better than private financing.

There are lenders who will provide financing for buyers less than six months out of a foreclosure, short sale or bankruptcy. Of course, this does not come without a price. You need a larger down payment and rates will be higher than traditional loans.

Another part of the puzzle to helping you get in a position to repurchase again is ensuring you have also started to re-establish your credit since the financial hardship.

For example, even though the required timeline of say two or three years may have passed so you can qualify for conventional or FHA financing again, it is important you have also started to rebuild your credit and have the required credit scores to qualify again for financing. The FHA and VA only require a 580 credit score to repurchase again.

The first step is to get a copy of your credit report to verify if the financial hardship or discharge is reporting correctly and to also see what your scores are.

You can go to www.annualcreditreport.com to get a free copy of your credit report (consumers are allowed one free credit report per year).

Then the next step is to start rebuilding your credit scores.

Filed under: Blog, boomerrang homebuyer, Down Sizing, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Mortgage Information, Real Estate, Relocation by Kim Bregman
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Should You Buy A Fixer-Upper Home?

Buying a fixer upper home comes with some unique advantages. For one, the price point for a fixer upper home will be lower than a comparable home that is in excellent shape. By paying less for a fixer upper home, you can have more of an opportunity to customize and tailor it to fit your unique taste and personality. Indeed, many fixer upper homes are great investments for people willing to put in the time and effort to transform a house into a home. On the flip side, some fixer upper homes might turn out to be more of a cash pit than a profitable purchase. Before you start your search for a fixer upper property, here are a few questions to ask to ensure that you will get the right fixer upper home for your budget, abilities, and future goals.

Has a professional home inspector done a report on the house?

It is essential that you use an Exclusive Buyer Agent that is working for you and not for themselves or the Sellers. They will be able to identify issues with the area and have resources for buyer oriented inspectors who will give a hard look at the property.

You should be prepared to pay for several inspections and secure cost estimates before you make a final decision on purchasing a fixer upper home.

Some problems in a fixer upper homes are obvious, while others might be hidden beneath the floorboards, walls, or surfaces. Having a professional home inspector check out the house before you buy will give you a realistic idea of what kind of condition the home is in and what repairs it needs.

How many repairs can you do on your own?

Minor aesthetic repairs, such as removing popcorn ceilings, painting the walls, or adding a backsplash to the kitchen can often be done on your own. Expensive repair bills come when there is damage to the structural integrity of the home. These types of repairs will likely require outside help to fix. For example, if the foundation of the home is warped or severely cracked, or if there is extensive termite damage, or the roof of the house needs to be replaced, you must hire an outside contractor. Without pricing these major repairs before buying the home, you could have a higher repair bill than you anticipate.

How much will each repair cost?

Once you have your list of repairs, it’s time to dig in and start researching the price of each item to fix. For aesthetic repairs, visit your local home improvement store and speak with a sales associate about how much the supplies will cost. For any repair that requires an outside contractor, request bids from local shops. You want to get a realistic idea of what your home repairs will cost to make sure that you will not go over your budget.

Add 20% to your budget for all the unexpected costs that will come with any renovation project.

What expenses am I not considering?

You should take into consideration whether you will be planning to live on or off premises. It’s more economical to live on premises, but for those homes undergoing extensive remodels, this may be unpleasant or not even an option. But, if you do choose to live on the premises you will have to be prepared to live with dust – a lot of dust. Your home will be a construction zone for well up to a year or beyond.

If you plan on doing extensive renovations, then living in the home is not an option. You need to consider the costs of storing your belonging, cost of alternative housing, carrying the property while under renovation, etc.

How much value can you add to the home?

Ultimately, the goal of buying a fixer upper is to create a cozy place to live and to ensure that you will make a financially sound investment. If you find a fixer upper that you are interested in, talk to a reliable real estate agent or home appraiser about each major repair you’re planning to make so you can get a reasonable estimate of how much value you can actually add to the home. You can also take a look at other homes in the area that do not need repair to see what they’re selling for.

Fixer upper homes require you to do your due diligence before signing on the dotted line, and revamping a home can be an exciting experience under the right circumstances. With these tips, you can start your search for a home

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Home Maintenance, Real Estate by Kim Bregman
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